In 2023, I decided to conduct an experiment. I wanted to see how much money I was spending on myself for non-essential purchases — items like clothing, gadgets, books, and other things along these lines.
To be clear, I did not count purchases like food or medication in my calculations — and that includes junk food and coffee. Sure, we don’t need those things, but I felt it was fair to lob them into the very reasonable “groceries” expense category.
During 2023, I wound up spending about $1,000 on myself all-in. And when I first saw that number, I had a very temporary “yikes” moment.
But then I realized that given my financial situation, this was actually a reasonable amount of money to have spent over a 12-month period. Also, it was spending that not only brought me joy, but didn’t come at the expense of other goals.
Why I was OK with spending $1,000 on myself
Based on what my financial situation looked like 10 years ago, I don’t know that I would have been comfortable spending $1,000 on things for myself. Back then, I earned a lot less and didn’t have the amount of money in my savings account that I have today. But all told, I’m fine with what I spent last year because it didn’t hurt my finances in a notable way.
Since I had a fully loaded emergency fund going into 2023, boosting my near-term savings wasn’t really a goal for last year. Rather, my big goal was to sock away a nice amount of money for retirement, and I did.
In fact, I automated the contributions to my retirement plan so I knew that account was getting funded every month. That meant I was meeting my savings goals before getting a chance to spend my money.
Also, spending that $1,000 did not cause me to take on high-interest debt. It’s not as if I charged those expenses on a credit card whose balance I’m still paying off. Rather, I had the money to cover those purchases on the spot, and I only put them on my credit card (which I promptly paid off) to get the reward points.
Plus, the items I bought are things I’ve gotten great use out of. I upgraded my e-reader and it’s now more pleasant and convenient to read books on the go.
There were also some books I really wanted to take me with on vacation this past summer. I couldn’t get physical copies from my library at the time, and I didn’t want to use an e-reader at the beach. So I spent a little money on books to enhance my vacation. I’ve since passed them on to other friends who got to enjoy them as well.
Another item I spent money on was clothing. I replaced some worn leggings with newer ones that are more comfortable. And I bought a pair of hiking pants with extra pockets because hiking is something I do often and I don’t always want to carry a backpack. So that purchase solved that problem.
It’s OK to spend money on the right things
A big reason I tracked my spending so carefully in 2023 wasn’t just to see how much I was spending. It was also to make sure I was getting good value out of my purchases. And I’m happy to report that the overwhelming majority of my purchases were actually worth the money now that I look back on them.
You might have the goal of limiting your spending in 2024. But do know that it’s OK to treat yourself once in a while — especially if spending that money doesn’t hinder your financial goals or result in debt, and if it allows you to own items that make your life more pleasant or convenient in one way or another.
An estimated 63% of Americans don’t have enough money in savings to cover an unplanned $500 expense, says SecureSave. So if you’re someone in that boat, then you probably shouldn’t be looking at spending $1,000 on non-essential items this year — at least not until your emergency fund is looking more robust.
But if you’re fine in the savings department, then don’t feel guilty about buying a $40 pair of pants here or a $20 sweatshirt there. In fact, you may not even want to go through the exercise of tracking your purchases unless you’re truly curious like I was.
Like I said, seeing that $1,000 total made me gasp initially — until I realized that it was a reasonable percentage of my income to spend. If you think tracking your spending will cause too much mental upheaval, don’t do it. Instead, keep your spending to a modest level and focus on buying items that are likely to offer you a lot of value.
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